By Dave Sims, Commodity News Service Canada
Winnipeg, July 18 (CNS Canada) – Canola contracts on the ICE Futures Canada finished higher on Wednesday, taking strength from advances in soyoil and dryness problems in Western Canada.
Gains in U.S. soybeans and recent weakness in the Canadian dollar also pointed the way higher.
Some funds were out looking for bargains, according to an analyst in Winnipeg.
Spread trade was moderate and the C$500 per tonne mark appears to be major resistance.
The technical bias is pointed lower.
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About 12,065 canola contracts traded, which compares with Tuesday when 12,487 contracts changed hands. Spreading accounted for 4,654 of the contracts traded.
Settlement prices are in Canadian dollars per metric tonne.
Soybean futures on the Chicago Board of Trade posted mild gains on Wednesday.
U.S. beans continue to be an attractive buy for many countries right now. There are ideas that if Brazilian beans get any more expensive China may simply buy beans from the U.S. and pay the tariff.
Pakistan purchased nearly 200,000 tonnes of soybeans from the U.S.
There are reports that heavy rains in Minnesota and Iowa have damaged crops along the border.
Corn futures ended close to unchanged as the market seems to have carved out a bottom for itself.
Farmers in Brazil are getting desperate to move corn right now. Many of them are running short of cash but freight bills are extremely expensive.
There are reports that some corn crops are having trouble filling in dry parts of the Midwest.
Chicago wheat futures ran into technical resistance and were little changed.
The spring wheat harvest in the Dakotas is expected to begin within the next two weeks.
A dry patch of weather is expected to set in on the Southern U.S. Plains, which could stress the wheat crop.
Wheat futures on the Minneapolis and Kansas City exchanges settled with small losses on Wednesday.
